Quote from Gustaf:
He said he started selling 2 years ago though
2 year ago ? Hmm, just after the big crash of 2008 and this is why he is posting and showing his profit here.
Virtual trading room for Options Sellers ?
- Thread starter Nomade
- Start date
2 year ago ? Hmm, just after the big crash of 2008 and this is why he is posting and showing his profit here.
Why assume fat people are too lazy to eat right and exercise? Why assume liberals donât understand basic math and human nature? Why assume almost all ETers donât make a living trading? Why assume that everyone asking questions about iron condors donât know what they are doing?
I assumed the hyperbole inherent in my post would be relatively apparent. No one has ever made 10% a month for over a decade and no one ever will, so it doesnât matter what you assume.
RobertN
Underestimating the real risks of selling premium ???
Risks ? What risks ?
and just how difficult it will be to exit your position when it goes against you
I get out at twice the premium I paid ! All market I trade are very liquid so I get fill immediately.
Also, I use some technical skills to make better entries and mainly focus on fundamental data. The beauty about selling way out of the money options is that I donât have to predict how the market will react short term ⦠I use seasonal charts as well â¦
My goal was to gather with some options traders (virtually) but never meant to convince anyone on shorting options ⦠Iâm a computer engineer, worked as a consultant for many years while trading and just loves what I do now ⦠So many options way way out of the money expire worthless (worthless crap) ⦠With the kind of volatility we have now, itâs an opportunity Iâm not missing !
Guess Iâll look somewhere else â¦
Why you guys are so negative about me posting my trades and exchanging with some traders ?
Charles
Underestimating the real risks of selling premium ???
Risks ? What risks ?
and just how difficult it will be to exit your position when it goes against you
I get out at twice the premium I paid ! All market I trade are very liquid so I get fill immediately.
Also, I use some technical skills to make better entries and mainly focus on fundamental data. The beauty about selling way out of the money options is that I donât have to predict how the market will react short term ⦠I use seasonal charts as well â¦
My goal was to gather with some options traders (virtually) but never meant to convince anyone on shorting options ⦠Iâm a computer engineer, worked as a consultant for many years while trading and just loves what I do now ⦠So many options way way out of the money expire worthless (worthless crap) ⦠With the kind of volatility we have now, itâs an opportunity Iâm not missing !
Guess Iâll look somewhere else â¦
Why you guys are so negative about me posting my trades and exchanging with some traders ?
Charles
Well, Chucky boy, just go ahead and start a thread in the journal section and post all your entries and exits in real time. Just include the specifics of the trades and how much cash you set aside for margin, then we call all see how someone makes 10% per month every month.Quote from Nomade:
Risks ? What risks ?
Why you guys are so negative about me posting my trades and exchanging with some traders ?
Charles
What commodity option markets are liquid electronically on IB? I have accessed gc, cl and es. Softs look look a bit thin. Nybot/ice look non existent on the screen.
You may have been looking during off-peak hours.
I trade all of these all the time - coffee - sugar, etc. included.
You do not need to have tight bid ask quotes for longer term trades.
Just put in a reasonable limit order and it will usually be filled, at least during the peak daily trading hours.
Now there are rare cases where you might need to hedge a position on an urgent basis. It is true that you may not be able to get out of a less popular strike right away at certain times. In such cases, you will have to temporarily delta hedge it against other strikes and months that are more liquid, or, in a few cases, by using futures. I have had to do this on a few occasions. It is not ideal but it is adequate to avoid large losses. Admittedly it does help to be trading large enough position sizes that the futures can be matched against your options position. Later on, after the market calms down, you can reverse the hedge and get out completely if you wish.
There are a very few markets such as copper options that I would not recommend trading at all because they really are too illiquid.
